PROBLEM #1 – BANK RECONCILIATION

In reconciling the cash in bank account with that shown in the bank statement on Dec. 31, 2019, the
following data are gathered:
Bank Balance, Dec. 31 P550,000
Cash in Bank Balance, Dec. 31 ?
Items of recorded cash receipts on Dec. 31, 2019 but deposited on Jan. 2, 2020:
Currencies and coins P45,000
Customer check-China Bank # 2761 dated Dec. 31, 2019 6,800
Customer check-PNB # 77531 dated Dec. 31, 2019 6,500
Note: The correct amount for China Bank check #2761 is P8,600. It was received for the sale of merchandise.
Checks issued but not yet presented to the bank for deposit/encashment:
Check # 090 - P 14,000 Check # 176 P 32,000
# 150 - 17,000 # 178 29,000
# 174 - 17,000
Note:
1. The company has already issued a stop payment order on check # 090 for which no entry has yet been
made.
2. Check # 150 was issued and recorded on Nov. 20, 2019. It was subsequently lost by the payee and
replaced with check # 174 on Dec. 20, 2019. No entry was made to record the issuance of check # 174.
3. The correct amount for check # 176 is P23,000. It was issued on Dec. 20, 2019 as payment for the
purchase of office equipment.
CM – Proceeds of bank loan, net of bank processing fee of P30,000 P 470,000
A customer’s check was marked “NSF” by the bank on Dec. 10, 2019. A replacement check
was subsequently redeposited and cleared the bank on Dec. 20, 2019. No entry was made
for the rejection and subsequent redeposit of the check. 5,000
The cash in bank account is the only cash account maintained by the company. It included the
following:
Petty cash fund (with P5,600 unreplenished vouchers) 10,000
Travel fund (P12,000 of which is in the hands of travelling salesmen) 20,000
An unrecorded customer’s check dated Nov. 25, 2019 was found in the drawer of the negligent
cashier on Jan. 2, 2020 and deposited on Jan. 3, 2020. It was received for the sale of
merchandise. 35,000
REQUIRED: ***All answers will be submitted through the Canvas questions provided.***

1.A. For items 1 to 9, you are to prepare all necessary adjusting entries. Use the following chart of accounts in
making your entries (use UPPERCASE letters only in inputting your answers):
AccountLetter Account Title
A CASH IN BANK
B ACCOUNTS RECEIVABLE
C PETTY CASH FUND
D TRAVEL FUND
E ADVANCES TO EMPLOYEES
F OFFICE EQUIPMENT
G ACCOUNTS PAYABLE
H LOAN PAYABLE
I SALES
J EXPENSES
K BANK SERVICE CHARGE
IMPORTANT: In inputting your answers in the Canvas questions, use the following format:
DR.AccountLetter.Amount.CR.AccountLetter.Amount
Note: A period (.) must be placed after each component and there should be no spaces in between. For
amounts, you have to manually input commas and periods whenever needed. Canvas is character-sensitive,
but not case-sensitive.

EXAMPLES:
If the entry is
Cash in Bank 80,000
Accounts Receivable 80,000
It should be input as follows:
DR.A.80,000.CR.B.80,000

If the entry is
Advances to Employees 2,000
Expenses 8,000
Cash in Bank 10,000
It should be input as follows:
DR.E.2,000.DR.J.8,000.CR.A.10,000
Note: If there are multiple debits or credits in an entry, the account titles must be arranged in the order that
they are presented/appear in the chart of accounts.

If you are having difficulty in applying the format, a pdf file on tips and tricks and an MS Excel file are
provided in the instructions part of the quiz in order to help you. There is also an instructional video on
how to use the MS Excel File.

If there is no adjustment necessary, input NONE.

Example: Hired an employee with a monthly salary of P10,000.
Answer: NONE

(0.5 point for each item)

1. China Bank check no. 2761
2. Check no. 090
3. Check no. 174
4. Check no. 176
5. Credit Memo-Proceeds of Bank Loan
6. Debit Memo-NSF P5,000 customer check
7. Petty Cash Fund
8. Travel Fund
9. Unrecorded customer’s check for P35,000

1.B. For items 10 to 13, based on the information provided, answer the following questions (1 point each):
Note: Be careful of spaces and comma placement. If the correct answer is 1,000, answering 1, 000 or 1000
will be considered incorrect. Regarding decimals, unless otherwise stated, all answers must be rounded off to
the nearest peso. If the correct answer is 1,000, answering 1,000.00 will be considered incorrect.

10. How much is the deposit in transit?

11. How much is the outstanding checks?
12. How much is the adjusted book/bank balance?
13. How much is the unadjusted book balance, Dec. 31?
PROBLEM # 2 – PROOF OF CASH
On July 31, 2019, the following data are provided to you:
A. Summary of entries in the books and bank statement:
Book Bank
Balance, June 30 P 5,605.32 P 5,895.42
Cash receipts 20,857.00 21,212.40
Cash disbursements (23,909.83) (24,128.10)
Balance, July 31 P 2,552.49 P 2,979.72
B. July bank credits include: note collected by bank on behalf of the company, P498.50; and June deposit
in transit, P515.40.
C. July bank debits include: bank service charge, P4; NSF check, P118.10; and June outstanding checks,
P810.50
D. There were no credit memos for June.
E. July book credits include June bank service charge, P5.
F. Book error – check for P46 recorded as P64.
Bank error – overstated debit, P12.50
REQUIRED: ***All answers will be submitted through the Canvas questions provided.***

2.A. For items 1 to 10, choose the letter that corresponds to the effect of the transactions/items to Beginning
Balance, Receipts, Disbursements, or Ending balance (0.5 point each):
Beginning Balance Receipts Disbursements Ending Balance
A Increase (+) Decrease (-)
B Decrease (-) Increase (+)
C Increase (+) Increase (+)
D Decrease (-) Decrease (-)
E Increase (+) Increase (+)
F Decrease (-) Decrease (-)
G Increase (+) Decrease (-)
H Decrease (-) Increase (+)
I Increase (+) Increase (+)
J Decrease (-) Decrease (-)
K Increase (+) Increase (+)
L Decrease (-) Decrease (-)
M NO EFFECT
Example: The transaction results in an increase in beginning balance and a decrease in receipts.
Answer: A
1. July Credit Memo – Note Collected 6. Deposit in Transit – June 30
2. June Debit Memo – Service Charge 7. Deposit in Transit – July 31
3. July Debit Memo – Service Charge 8. Outstanding Checks – June 30
4. July Debit Memo – NSF Check 9. Outstanding Checks – July 31
5. Book Error 10. Bank Error

2.B. For items 11-20, be mindful of spaces, comma placement, and decimal points. For uniformity in answering,
all answers must be input with two decimal places. If the answer is 1,234, it must be inputted as 1234.00. If
the answer is 1,234.5, it must be inputted as 1,234.50. If the answer is 1,234.567, it must be rounded off and
input as 1,234.57. Otherwise, your answer will be considered incorrect. (1 point each)
11. In computing deposit in transit July 31, how much should be the adjusted July Book Debits?
12. In computing deposit in transit July 31, how much should be the adjusted deposits credited by bank?
13. How much is the deposit in transit, July 31?
14. In computing the outstanding checks July 31, how much should be the adjusted July Book Credits?
15. In computing the outstanding checks July 31, how much should be the adjusted checks paid by bank?
16. How much is the outstanding check, July 31?
17. How much is the adjusted June 30 book/bank balance?
18. How much is the adjusted July receipts?
19. How much is the adjusted July disbursements?
20. How much is the adjusted July 31 book/bank balance?
PROBLEM #3 – PROOF OF CASH
The bank reconciliation prepared by X Co. on July 31, 2019 is provided below:
Bank balance P45,000
Add: Deposit in transit P2,500
Bank error – erroneous debit 260 2,760
Total 47,760
Less: Outstanding checks 9,740
Adjusted bank balance P38,020
The bank error represents a P260 check of Y Co. that was charged by the bank to the account of X Co. The
bank corrected the mistake in August.
Information for August 2019:
A. Bank Book
Receipts P100,830 P148,990
Disbursements 100,000 135,000
B. Deposit in transit, Aug. 31 P?
Outstanding checks, Aug. 31 P?
C. Debit Memos:
Service Charge – P 25
NSF Check – 245
D. A P6,450 customer’s check received from sale of merchandise was recorded by X Co. as P6,540.
E. A P20,000 supplier’s check in payment of purchases of goods, was dated and recorded on July 30,
2019. On July 31, 2019, it was not yet mailed to the supplier.
REQUIRED: ***All answers will be submitted through the Canvas questions provided.***

3.A. For items 1 to 9, choose the letter that corresponds to the effect of the transactions/items to Beginning
Balance, Receipts, Disbursements, or Ending balance AND indicate the amount of effect (0.5 point each):
Beginning Balance Receipts Disbursements Ending Balance
A Increase (+) Decrease (-)
B Decrease (-) Increase (+)
C Increase (+) Increase (+)
D Decrease (-) Decrease (-)
E Increase (+) Increase (+)
F Decrease (-) Decrease (-)
G Increase (+) Decrease (-)
H Decrease (-) Increase (+)
I Increase (+) Increase (+)
J Decrease (-) Decrease (-)
K Increase (+) Increase (+)
L Decrease (-) Decrease (-)
M NO EFFECT
Examples: The transaction results in an increase in beginning balance and a decrease in receipts of P5,000.
Answer: A.5,000
The transaction results in an decrease in receipts and a decrease in ending balance of P7,500.
Answer: F.7,500
Note: There must be a period (.) after the letter, and no spaces in between. If there is no effect, just input M

1. August Debit Memo-service charge

2. August Debit Memo-NSF check
3. Book Error – Receipts
4. Book Error – Disbursements
5. Deposits in Transit – July 31
6. Deposits in Transit – August 31
7. Outstanding Checks – July 31
8. Outstanding Checks – August 31
9. Bank Error – Disbursement
3.B. For items 11-20, be mindful of spaces, comma placement, and decimal points. For uniformity in answering,
all answers must be inputted without decimal places. If the answer is 1,234, answering 1,234., 1,234.0,
1,234.00, or 1, 234, will be considered incorrect. (1 point each)

11. In computing deposit in transit August 31, how much should be the adjusted August Book Debits?
12. In computing deposit in transit August 31, how much should be the adjusted deposits credited by bank?
13. How much is the deposit in transit, August 31?
14. In computing the outstanding checks August 31, how much should be the adjusted August Book Credits?
15. In computing the outstanding checks August 31, how much should be the adjusted checks paid by bank?
16. How much is the outstanding check, August 31?
17. How much is the adjusted July 31 book/bank balance?
18. How much is the adjusted August receipts?
19. How much is the adjusted August disbursements?
20. How much is the adjusted August 31 book/bank balance?